Posted by Tim- chi on September 11, 2003 at 20:16:40:
Mike,
Is the seller in bankruptcy now? If so, they must list all assets/liabilities. If you’d like you can email me and we can discuss this. I have a Pacer account which allows me to pull a debtors petition- we can confirm what he’s showing to the court.
I’ll be glad to help you if I can.
Tim
bunkruptcy dismissed? - Posted by susan
Posted by susan on September 11, 2003 at 13:32:44:
I’m new to the bankruptcy land (do have an appointment with lawyer next week) and looking for guidance on a deal. I have an agreement to buy his property (not in the bankruptcy) to pay off numerous creditors. We were just about to sign the paperwork and he informs me the bankruptcy has been dismissed and they are going to foreclose on him. Any suggestions from you pros before i talk to a lawyer on a good way to approach this. I have about 10 deals under my belt, just not dealing with this. Thanks.
Re: bunkruptcy dismissed? - Posted by Tim- chi.
Posted by Tim- chi. on September 11, 2003 at 14:38:51:
Susan,
It’s good to get legal advice before you proceed. A few things that you may want to review with the seller: you mention that the property is not in the bankruptcy, however, the seller must list all assets/liabilities and therefore the property is likely considered part of the bankruptcy estate. It sounds like the seller failed to pay the mortgagee who in turn filed a motion with the bankruptcy court to proceed with the foreclosure. You can still buy the property, in fact you now can do so without needing to get the court to agree to the sale which is good because from my experience the bankruptcy Trustee will want some consideration to allow the sale which will then be used to pay other creditors.
Be sure you’re getting clear title- if he was in bankruptcy he may have other liens/judgments against him. Are you buying with cash/loan, or sub2? If sub2 you may want to be careful given the chance he may refile for bankruptcy- i.e if he previously filed a chap. 13 he may file a chap.7 which could lead the new Trustee to scrutinize your deal.
Just some things to consider. Good luck.
Tim
Re: bunkruptcy dismissed? - Posted by Mike Cerni (IL)
Posted by Mike Cerni (IL) on September 11, 2003 at 17:33:11:
Wow, almost the same situation I’m in right now.
I have a purchase contact signed (as of last night) to attempt a short sale with the Bank.
Seller claims his house and car were not included in the bankruptcy, gathering paperwork as we speak.
Not sure if it was a 7 or 13 either.
Nothing else recorded against the property.
I figured I’d get the purchase contact signed, authorization to release loan info., and then do my homework.
My question is for Tim, it seems you have had some experience in this area. I’ve been on the phone with 2 attorneys and left messages. No one yet has been able to give me any advice.
Have you worked on any deal like this with an attorney before?
I’m on the SW side of Chicago, so I figured I’d ask.
Thanks in advance for any leads.
~Mike